TheBigShort
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Is it beyond possible that the bots and the algorithms are deducing that the money printing scams of trillions and trillions of €'s and $'s and Yen etc... otherwise called QE can only lead to one outcome - a massive devaluation of fiat currencies?
Is it possible gold and silver would be soaring now only for the manipulation of those markets?
You can’t have it both ways.
Let's say that the $ and € and stg all collapse to almost zero simultaneously.
Unless you've got lots of tinned food, bottled water, and a shotgun you're not prepared for that scenario!Let's say that the $ and € and stg all collapse to almost zero simultaneously
The aim of QE is to achieve some kind of inflation to ease the pain of the Southern European countries.I am very worried about QE. It has not really been tried before and nobody knows how it will end up. It surprises me that it has not caused inflation.
Collapse in relation to what? The Yuan and Yen?Let's say that the $ and € and stg all collapse to almost zero simultaneously.
I would not believe it would be the currency of choice - at least not mine.What happens to bitcoin? Why would it be the "currency" of choice? Why not one of the other cryptocurrencies?
QE can only lead to one outcome - a massive devaluation of fiat currencies?
No the Bitcoin surge is definitely not induced by QE / the monetary system but just by the perception of being a great get rich quickly scheme.
The US already started with a small interest rate increase and it worked out fine so far.
That NK is not a threat is a joke I guess - they sunk a South Korean ship, they shelled a South Korean Island, they develop long range missiles and testing nukes - but you claim the US is the bad one.
I assume you have a perception problem based on your ideology - being it on economics or politics...
E.g. what have the Paradise Papers to do here with anything? You are throwing here around with terms which relate to nothing.
You speak at the beginning about massive inflation but the real inflation numbers don't reflect what you are claiming.
They have. Long dated bond yields in developed markets are all less than 2% and many close to zero, https://www.bloomberg.com/markets/rates-bonds. DE, AT, FR and JP have issued negative interest rate bonds. So if you buy a developed market government bond, and it is government bond yields that in the long term determine the price of a currency, i.e. the forex rate, you are getting little or no return, and possibly a negative return, i.e. the currency has collapsed. They all have. I think bitcoin is irrelevant in this situation. Inflation, in developed market economies, is again close to zero or is or is less than zero https://data.oecd.org/price/inflation-cpi.htm#indicator-chart. Bond yields are low because inflation is low because investors expect it to remain low. I stand open to correction on this, but I doubt there is a massive flow of funds from developed market currencies to bitcoin, because of the collapse of developed market bond yields.Let's say that the $ and € and stg all collapse to almost zero simultaneously.
QE in itself is not inherently inflationary. It's essentially creating money to buy government debt to swap for other financial assets, that stay on the central bank's balance sheet. So it's not increasing the money supply, i.e. M0 – M3 in the real economy, which risks inflation. But QE doesn't or shouldn't do this. However, if inflation were to return would investors move from an inflating currency to bitcoin? Central banks would most likely move to choke off inflation by raising interest rates. But a currency with relatively higher interest rate should depreciate relative to a currency with lower rates. As bitcoin has lower, i.e. zero, interest rates, I think you could see funds flow to bitcoin (or equivalents, e.g. gold, Swiss francs, etc.) in an inflationary world. But we don't live today in an inflationary world. We live in a non-inflationary or a deflationary world, so does buying bitcoin or any equivalent cryptocurrency asset give you an edge over no yield or low yield developed market government bonds?I am very worried about QE. It has not really been tried before and nobody knows how it will end up. It surprises me that it has not caused inflation.
This is an intriguing possibility. If bitcoin/domestic currency fx rates stabilize (i.e. you are not exposed to unexpected fx risk), you transact over the internet in bitcoin and save on bank fees. Not significant for the individual but for large scale online retailers they add up. So massive savings for online retailers here. You may not trust bitcoin but would you have confidence in a cryptocurrency from Amazon or Google? Of course, you would. And it would fit into their business model.Is it possible (last point) that bitcoin is the future avenue to conduct all digital transactions over the internet?
You are correct, at this point in time. But Bitcoin is selling itself as an “innovative payment network and a new kind of money” and there are other projects around, e.g. cryptocurrency tokens, etc. to add payment functionality on cryptocurrencies.There's no point even considering bitcoin as a full fledged alternative for everyday use, until there are layers on top of it that vastly increase the transaction capacity. People are working on such technologies and believe it's theoretically possible, but as of yet there is nothing complete and ready for production use. I reckon we're still years away from this, if it ever even comes to fruition.
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